JVI Velocity Asset Management,

Velocity Asset Management, Inc. (AMEX: JVI) (�Velocity�), which collects delinquent consumer receivables using an outsourced litigation model, today announced operating results for the three- and six-month periods ended June 30, 2008. 2008 Q2 Conference Call/Webcast Information: Conference Call: � Monday, August 18, 2008 at 11:00 a.m. ET Dial-in Number: 800/735-5968 Replay Number: 800/633-8284, code 21391071; until 1:00 p.m. ET, Aug 20th Webcast: � www.velocitycollect.com, available for 30 days Summary Financials � � � � � � � � � � Three Months Ended � � Six Months Ended � June 30, % June 30, % � � 2008 � 2007 � � � 2008 � 2007 � � Revenues � $ 3,661,913 � � $ 3,296,214 � � 11 % � $ 7,498,122 � � $ 6,371,089 � � 18 % Operating Income � � 1,603,795 � � � 1,502,044 � � 7 % � � 3,729,033 � � � 2,840,592 � � 31 % Income from continuing operations � � 750,509 � � � 738,173 � � 2 % � � 1,798,427 � � � 1,304,450 � � 38 % Loss from discontinued operations � � (452,095 ) � � (92,441 ) � 389 % � � (843,297 ) � � (128,910 ) � 554 % Net Income � � 298,414 � � � 645,732 � � (54 %) � � 955,130 � � � 1,175,540 � � (19 %) Net (Loss) income attributable to common holders � � � (46,586 � ) � � � 300,732 � � � NA � � � 265,130 � � � � 485,540 � � � (45 � %) EPS (fully diluted) � � (0.01 ) � � 0.02 � � NA � � 0.01 � � � 0.03 � � (67 %) EPS (continuing ops.) � � 0.02 � � � 0.02 � � 0 % � � 0.06 � � � 0.03 � � 100 % Diluted Shares Out. � � 17,604,453 � � � 17,719,398 � � (1 %) � � 17,355,102 � � � 17,802,517 � � (3 %) VI* Receivables Under Management � � 500,000,000 � � � 433,000,000 � � 15 % � � 500,000,000 � � � 433,000,000 � � 15 % VI* Gross Collections � � 4,739,198 � � � 4,534,102 � � 5 % � � 9,160,316 � � � 8,215,905 � � 11 % *Velocity Investments � a wholly owned subsidiary in the distressed consumer receivables business Velocity�s Q2 2008 revenue grew 11 percent as the Company�s outsourced litigation collection model continued to perform on-plan. Velocity reported Q2 �08 operating income increased 7% to $1.6 million and income from continuing operations rose 2% to $751,000, versus Q2 2007. Reflecting a higher tax provision of $580,000 (43.6%) in Q2 �08 vs. $370,000 (33.4%) in Q2 �07 and a loss from discontinued operations of $452,000, primarily due to a $400,000 impairment charge in connection with a Florida investment property, Velocity reported a Q2 net loss attributable to common shareholders of $47,000, or $0.01 per diluted share, compared to net income of $301,000, or $0.02 per diluted share, in the prior year period. �In the face of challenging capital markets and concern about the consumer economy, Velocity�s disciplined collections model continued to perform according to expectations during the 2008 second quarter,� stated Velocity President and CEO Jack Kleinert. �Despite an improved operating performance in our core Velocity Investments business, our Q2 results were adversely impacted by a loss from discontinued operations as a result of an impairment charge on a Florida investment property and a higher income tax provision. �As we have indicated in recent quarters, it continues to be a very attractive environment for acquiring charged-off receivables. In order to pursue these opportunities and support the growth of our portfolio, we issued Subordinated Notes in the aggregate principal amount of $700,000 in a private placement offering, and secured approximately $794,000 in net proceeds from a private placement of Units during the period. �We deployed some of the aforementioned proceeds by purchasing five new charged-off consumer receivables portfolios aggregating approximately $13.9 million of initial outstanding amount. In aggregate, Velocity has acquired 89 portfolios with an initial outstanding amount of approximately $500 million since inception,� concluded Mr. Kleinert. As of June 30, 2008, the Company had $11.6 million outstanding, and $10.9 million in availability on its $22.5 million senior credit facility with Wells Fargo Foothill, Inc. Velocity Asset Management continues to wind-down the discontinued operations of its J. Holder and VOM subsidiaries and expects to complete this process by the end of 2008. These divestitures should free up additional capital and allow management to focus exclusively on its core, consumer receivables business, Velocity Investments. About Velocity Asset Management, Inc. Velocity Asset Management, Inc., through its wholly owned subsidiary, Velocity Investments, LLC, is focused on the purchase and collection of distressed consumer receivables, principally through an outsourced litigation model. The Company purchases consumer receivable portfolios that are of �litigation quality.� By focusing on the quality of the portfolio prior to purchase, Velocity aims to diminish its risk and improve its overall collection rate as a percentage of principal balance. For more information, visit www.velocitycollect.com. This Press Release contains or may contain forward looking statements and information that are based upon beliefs of and information currently available to the Company's management as well as estimates and assumptions made by the Company's management. When used herein the words ''anticipate", "believe", "estimate", "expect", "future", "intend", "plan" and similar expressions as they relate to the Company or the Company's management identify forward looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties and assumptions relating to the Company's operations and results of operations and any businesses that may be acquired by the Company, including future collections, increased revenue, increased operating income and consumer receivables under management at the Company's Velocity Investments subsidiary. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, intended or planned. VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS � ASSETS � JUNE. 30, 2008 � DEC. 31, 2007 (Unaudited) � Cash and cash equivalents $ 167,166 $ 162,180 Consumer receivables, net 46,826,499 46,971,014 Property and equipment, net of accumulated depr. 52,984 64,420 Deferred income tax asset, net 78,000 98,600 Security deposits 30,224 30,224 Other assets (including $0 and $115,146 employee loan to a related �party at 6/30/08 and 12/31/07, respectively) 395,316 487,071 Assets of discontinued operations � 5,868,656 � � 6,793,319 � Total assets $ 53,418,845 � $ 54,606,828 � � LIABILITIES Accounts payable and accrued expenses $ 359,652 $ 552,269 Estimated court and media costs 6,218,590 7,374,212 Lines of credit 11,627,437 14,429,138 Notes payable 200,000 - Notes payable to related parties 700,000 200,000 Convertible subordinated notes 2,350,000 2,350,000 Income taxes payable 1,093,609 820,222 Liabilities from discontinued operations (including notes payable to�related parties of $2.3 mm at 6/30/08 and 12/31/07) � 5,419,377 � � 4,374,441 � Total liabilities $ 27,968,665 � $ 30,100,282 � � STOCKHOLDERS' EQUITY Series A 10% convertible preferred stock, $0.001 par value, 10,000,000 shares authorized, 1,380,000 shares issued �and outstanding (liquidation preference of $13,800,000) 1,380 1,380 Common stock, $0.001 par value, 40,000,000 shares authorized, �17,875,987 and 17,066,821 shares issued and outstanding, respectively 17,875 17,066 Additional paid-in capital 25,921,639 25,243,944 Accumulated deficit � (490,714 ) � (755,844 ) � Total stockholders' equity � 25,450,180 � � 24,506,546 � � Total liabilities and stockholders' equity $ 53,418,845 � $ 54,606,828 � VELOCITY ASSET MANAGEMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) � For the Three Months Ended June 30, � For the Six Months Ended June 30, 2008 � 2007 � 2008 � 2007 REVENUES Income on consumer receivables 3,660,073 3,291,023 7,494,926 6,347,066 Other income � 1,840 � � 5,191 � � 3,196 � � � 24,023 � Total revenues � 3,661,913 � � 3,296,214 � � 7,498,122 � � � 6,371,089 � � OPERATING EXPENSES Professional fees (including fees paid to related parties of $226,104 and $273,866 and $436,645 and $611,450 for the periods ended June 30, 2008 and 2007, respectively) 1,401,163 1,209,140 2,570,707 2,124,864 General and administrative expenses � 656,955 � � 585,030 � � 1,198,382 � � � 1,405,633 � Total operating expenses � 2,058,118 � � 1,794,170 � � 3,769,089 � � � 3,530,497 � Income from operations 1,603,795 1,502,044 3,729,033 2,840,592 � OTHER EXPENSE Interest expense (including interest incurred to related parties of $3,500 and $3,500 and $7,000 and $7,000 for the three and six month periods ended June 30, 2008 and 2007, respectively) � (273,708 ) � � (394,049 ) � (608,778 ) � � (739,367 ) Income from continuing operations before provision for income taxes 1,330,087 1,107,995 3,120,255 2,101,225 Provision for income taxes � 579,578 � � 369,822 � � 1,321,828 � � 796,775 � Income from continuing operations 750,509 738,173 1,798,427 1,304,450 Loss from discontinued operations (including fees paid and interest incurred to related parties of $0 and $25 and $0 and $192 and $58,139 and $54,853 and $116,278 and $109,103, respectively, for the three and six month ended at 6/30/08 and 6/30/07, and net of tax benefit of $231,390 and $48,337 and $295,554 and $94,164 for the three and six months ended June 30, 2008 and 2007) � (452,095 ) � (92,441 ) � (843,297 ) � (128,910 ) Net income 298,414 645,732 955,130 1,175,540 Preferred dividend � (345,000 ) � (345,000 ) � (690,000 ) � (690,000 ) Net income (loss) attributable to common shareholders $ (46,586 ) $ 300,732 � $ 265,130 � $ 485,540 � Earnings Per Share: Income from continuing operations: Basic $ 0.02 $ 0.02 $ 0.06 $ 0.04 Diluted $ 0.02 $ 0.02 $ 0.06 $ 0.03 Discontinued operations: Basic $ (0.03 ) $ 0.00 $ (0.05 ) $ (0.01 ) Diluted $ (0.03 ) $ 0.00 $ (0.05 ) $ 0.00 Net income: Basic $ (0.01 ) $ 0.02 $ 0.01 $ 0.03 Diluted $ (0.01 ) $ 0.02 $ 0.01 $ 0.03 Average Common Shares - Basic 17,488,534 16,163,936 17,267,963 16,151,144 Average Common Shares - Diluted 17,604,453 17,719,398 17,355,102 17,802,517